New vehicle sales in Vietnam fell by over 20% to 19,257 units in September, from 24,132 units in the same month of last year, according to member data released by the Vietnam Automotive Manufacturers Association (Vama). 

The vehicle market has struggled to move forward this year, after several years of exceptionally strong growth, despite improving economic indicators.

Third quarter GDP growth is estimated at 7.5% year on year, up from a revised 6.3% in the second quarter, on stronger manufacturing output and exports.

In the first nine months of the year, total vehicle sales fell by 4.2% to 184,843 units from 192,945 units in the same period of last year, with passenger vehicle sales slightly higher at 108,976 units and commercial vehicle sales down by 9.3% at 75,867 units.

Toyota was the leading brand in the first nine months of the year with sales rising by 12% to 43,832 units.

Truong Hai (Thaco) group, the local assembler and distributor of brands such as KIA, Mazda, Peugeot and Hyundai, and a significant player in the commercial vehicle segment, reported a 19% drop in group sales to 66,596 units.

Ford’s sales rose by 1% to 21,352 units in the nine month period while Honda’s volume was 28% higher at 9,756 units and GM’s 19% higher at 8,097 units.